What Annual BIR and LGU Requirements Do Sole Proprietors and Individuals Need to Meet? A Practical Compliance Calendar
A once-a-year BIR and LGU calendar for Philippine sole proprietors, professionals, and other individuals — who each item applies to, the usual due dates, and the DTI five-year business-name caveat.
Looking for the SEC-registered calendar?
This guide is for sole proprietors, self-employed professionals, and other individuals who are not registered with the SEC. If your business is a corporation, a One Person Corporation, or a partnership registered with the SEC, use the companion calendar for SEC-registered entities.
- January (typically the 20th) — Mayor’s / business permit renewal, local business tax, and clearance stack
- January 15 — Payee’s sworn declaration of gross receipts (Annex B-1 / B-2 / B-3)
- January 15 (commonly) — Bound loose-leaf books of accounts submitted / registered
- January 30 — Year-end inventory list; computerized books commonly due
- January 31 — Forms 1604-C / 1604-F with alphalists; Form 2316 to employees; payor Annex C
- Last day of February — Community tax certificate (cedula)
- February 28 — Annex F + scanned, signed Form 2316 copies (substituted filing)
- March 1 — Form 1604-E with the annual alphalist of payees
- April 15 — Annual income tax return (1700 / 1701 / 1701A)
- DTI business name (5 years) — Not an annual renewal — check the expiry on your certificate
Who this is for
- Sole proprietors operating under their own name or a DTI-registered business name: BIR + LGU. You do not file a SEC GIS or SEC AFS unless you also have a separate SEC-registered entity.
- Self-employed professionals and consultants (including those who give payors a sworn declaration of gross receipts so the lower expanded-withholding rate can apply).
- Mixed-income individuals (compensation plus business or practice of profession) and estates or trusts engaged in trade or business.
- Individuals earning purely compensation income who must still file (for example, two or more employers during the year, or tax not correctly withheld). Employees who qualify for substituted filing generally do not file Form 1700 — their BIR-received Form 2316 stands in.
- VAT-registered and non-VAT businesses (including qualified individuals on the 8% income tax option): your Certificate of Registration still determines your tax types, which can affect annual forms and attachments. Periodic VAT or percentage-tax returns are not in this calendar.
- Employers and other withholding agents: annual information returns (Forms 1604-C, 1604-E, and 1604-F) and Form 2316 for employees.
- Businesses that keep inventory: the year-end inventory list due 30 days after year-end.
This calendar does not replace your Certificate of Registration
Your BIR Form 2303 lists the tax types you must file. A sari-sari store, a professional practice, and a mixed-income employee will not have the same stack. This article covers only annual or once-a-year BIR and LGU items for individuals — not monthly or quarterly tax filings, not SSS, PhilHealth, or Pag-IBIG contribution reports, and not SEC reportorial filings.
How to read this calendar
- Only annual items are listed. Monthly and quarterly BIR deadlines (VAT, percentage tax, withholding remittances, quarterly income tax, and similar) are left out on purpose.
- Dates are statutory or “typical,” not automatically adjusted for 2027 holidays except where we flag a specific upcoming weekend (January 30 and 31 and February 28, 2027).
- Individuals file on a calendar year (NIRC Sec. 51). If you later incorporate and the corporation uses a fiscal year, those deadlines count from the corporation’s year-end — see the companion calendar for SEC-registered entities.
- LGU rules vary. Metro Manila and most cities still cluster renewal in January; some renew on the permit’s anniversary. Always check your LGU.
The year at a glance
For a calendar-year sole proprietor, professional, or other individual in business, the once-a-year rhythm usually looks like this. Skip any row that does not match your registrations.
| When | What | Who it usually applies to |
|---|---|---|
| January (typically the 20th) | Mayor’s / business permit renewal, local business tax, and the usual supporting stack: barangay clearance, Fire Safety Inspection Certificate, sanitary permit, and copies of occupancy or zoning clearances if your LGU asks. A current community tax certificate is often requested at the same window. This is a typical pattern — check your city or municipality. | Every operating business with an LGU permit |
| January 15 | Payee’s sworn declaration of gross receipts (Annex B-1, B-2, or B-3) to each payor, so the lower expanded withholding rate can apply. | Qualified professionals, consultants, and smaller sole props billing withholding agents |
| January 15 (commonly) | Bound loose-leaf books of accounts submitted / registered (ordinary calendar date; confirm each year’s BIR circular and ORUS). | Taxpayers using permitted loose-leaf books |
| January 30 | Year-end inventory list (30 days after year-end). Computerized books of accounts are also commonly due this date. January 30, 2027 is a Saturday — file a few working days early. | Businesses that keep inventory; CAS/CBA users |
| January 31 | Forms 1604-C and 1604-F with alphalists; Form 2316 issued to employees; payor’s Annex C sworn declaration. January 31, 2027 is a Sunday. | Employers and withholding agents |
| Not later than the last day of February | Community tax certificate (cedula). The tax accrues on January 1 and must be paid not later than the last day of February (Local Government Code, Sec. 161). Many owners obtain it in January because the LGU asks for it at permit renewal. | Individuals required to pay community tax |
| February 28 | Employer submits Annex F of RR No. 11-2018 (certified list of employees qualified for substituted filing) and scanned, signed Form 2316 copies for those employees. February 28, 2027 is a Sunday — file a few working days early. | Employers with employees under substituted filing |
| March 1 | Form 1604-E (annual information return of expanded withholding) with the annual alphalist of payees. | Expanded-withholding agents |
| April 15 | Annual income tax return for the previous calendar year, on the correct form (1700, 1701, or 1701A), with required attachments (including AFS via eAFS when Section 232 requires an audit). | Sole proprietors, professionals, mixed-income individuals, and others required to file |
BIR: the annual cluster
Annual income tax return
The statutory deadline is April 15 for individuals covering the preceding calendar year (NIRC Sec. 51(C)(1)). Pick the form that matches how you earn income:
| Form | Who it is for |
|---|---|
| 1700 | Individuals earning purely compensation income who are required to file (for example, two or more employers during the year, or tax not correctly withheld). |
| 1701A | Individuals earning income purely from business or practice of profession who use the optional standard deduction or the 8% income tax option. |
| 1701 | Individuals with mixed income (compensation plus business or profession), purely self-employed individuals who use itemized deductions, and estates or trusts engaged in trade or business. |
Employees with purely compensation income from only one employer in the Philippines, with tax correctly withheld, generally qualify for substituted filing: their Form 2316, once received by the BIR, stands in for an annual return (NIRC Sec. 51-A). They do not file Form 1700.
If you are a partner in a general professional partnership, the partnership itself is not subject to income tax (NIRC Sec. 26); you report your distributive share on Form 1701 or 1701A. The partnership’s own SEC and BIR information-return filings, if it is SEC-registered, are in the companion calendar for SEC-registered entities.
Attach required schedules and, when you claim creditable tax withheld, the Summary Alphalist of Withholding Taxes (SAWT) together with the related BIR Form 2307s. When Section 232 applies, upload audited financial statements through the BIR eAFS system (eafs.bir.gov.ph) around the same time as the return and keep the Transaction Reference Number. Sole proprietors and other individuals do not file those statements with the SEC. If you have related-party transactions that meet the thresholds under RR No. 34-2020, attach BIR Form 1709 (and any required transfer-pricing documentation) as well.
Annual withholding information returns and certificates
| Form | Usual deadline |
|---|---|
| 1604-C and 1604-F, with alphalists; 2316 issued to employees | January 31 following the calendar year. |
| Annex F of RR No. 11-2018 (certified list of employees qualified for substituted filing) and scanned, signed 2316 copies for those employees, submitted to the BIR | February 28. February 28, 2027 is a Sunday — file a few working days early. |
| 1604-E, with the annual alphalist of payees | March 1. |
Payees who want the lower expanded withholding rate must give each payor a sworn declaration of gross receipts by January 15 (or before the first payment). Payors file Annex C with their list of payees by January 31. That process has its own deeper guide; this calendar only flags the dates.
Separately, employers with employees under substituted filing submit Annex F and the scanned Form 2316s by February 28 (RR No. 16-2021; RMC Nos. 117-2021 and 29-2024).
Form 1604-E (annual information return of expanded withholding), with the annual alphalist of payees, is due on or before March 1.
Inventory, books, AFS, and registration updates
- Inventory list: not later than 30 days after the close of the taxable year (January 30 for a calendar year), in the formats under RMC No. 57-2015 as amended by RMC No. 8-2023. For calendar year 2026 that is January 30, 2027, a Saturday — we recommend filing by Friday, January 29.
- Books of accounts: keep registered books. Manual bound books are generally registered when the previous volume is exhausted, not automatically every January. Under the ordinary ORUS calendar (RMC No. 3-2023, as recited again in RMC No. 4-2026), permanently bound loose-leaf books are due around January 15 and computerized books of accounts around January 30. RMC No. 4-2026 then extended that 2026 cycle only — to January 31, 2026 (loose-leaf) and February 17, 2026 (computerized books) — because of ORUS issues. Treat the extension as one-year and confirm the circular that will apply in January 2027 rather than assuming it repeats.
- Audited financial statements for BIR: required when Section 232 of the Tax Code applies (gross annual sales, earnings, receipts, or output exceeding ₱3,000,000). Upload through eAFS. You do not file an AFS with the SEC as a sole proprietor or other unregistered individual.
- Certificate of Registration updates: not an annual January ritual. Update your RDO when you change address, tax types, lines of business, or branches. The old ₱500 annual registration fee is gone (RA 11976; RMC No. 14-2024).
- Documentary stamp tax: there is no separate annual DST return for ordinary SMBs. Form 2000 is filed when a taxable document is issued (transaction-driven), not on this once-a-year calendar.
DTI business name: five years, not annual
If you are a sole proprietor doing business under a name other than your own, you register that name with the DTI. The registration is valid for five (5) years from the date of registration (DTI FAQs on Services, August 2022; bnrs.dti.gov.ph/faq). It is not an annual filing and it is not a license to operate — you still renew your LGU business permit each year.
You may file early starting 180 calendar days before expiry. Regular renewal is within 90 calendar days after expiry, with a further 90-day grace period subject to a surcharge. Names not renewed within the grace period are cancelled. Check the expiry date on your certificate rather than putting a DTI deadline on every January calendar.
LGU: business permit and the typical clearance stack
The stack in this section is typical — always check your city or municipality’s BPLO checklist and revenue code. Under the Local Government Code, local taxes, fees, and charges accrue on January 1 and are generally paid within the first 20 days of January (Secs. 166–167). That is why most cities and municipalities — including the common Metro Manila pattern — treat January 20 as the annual business permit renewal deadline. Your 2027 local business tax is typically computed on your 2026 gross sales or receipts, so the figure you declare should match your books and your BIR returns. Some LGUs allow the tax itself to be paid in installments; the permit is still typically renewed once a year.
The sanggunian may extend the deadline without surcharge for up to six months. RA 11032 also allows an LGU to make the permit valid for one year from the date of issue, so some cities renew on the anniversary printed on the permit rather than every January. Check your own revenue code and BPLO notice; do not assume Manila’s calendar is yours.
| Typical item | What it is | When (common pattern) |
|---|---|---|
| Mayor’s / business permit | The city’s or municipality’s license to operate, usually processed at the BPLO or a January Business One-Stop Shop | Typically the first 20 days of January |
| Local business tax and regulatory fees | Business tax (usually on prior-year gross sales), plus garbage, signage, and similar local charges | Same January renewal window (some LGUs allow the tax to be paid in installments) |
| Barangay clearance / barangay business clearance | Clearance from the barangay where the business is located. Under RA 11032, some cities collect this at city hall and remit the barangay’s share. | Gathered for the renewal filing; timing follows your barangay or city one-stop shop |
| Fire Safety Inspection Certificate (FSIC) | Bureau of Fire Protection clearance under the Fire Code (RA 9514) | As your LGU and BFP require before the permit is released |
| Sanitary permit / health clearance | City or municipal health office inspection, especially for food, hospitality, and similar businesses | Commonly issued together with the business permit under RA 11032 |
| Zoning / locational clearance | Confirms the activity is allowed at the address. More often critical for new applications; some LGUs still ask for a copy at renewal. | Per your LGU checklist — not automatically reissued every year |
| Certificate of occupancy / occupancy permit | Issued under the National Building Code (PD 1096) after construction or a major renovation. Many LGUs ask for a copy at renewal rather than issuing a new occupancy permit every year. | Typically a supporting document, not an annual re-issuance — confirm on your city’s checklist |
| Community tax certificate (cedula) | Often requested for the owner when the permit is renewed | Accrues January 1; paid not later than the last day of February (LGC Sec. 161). Commonly obtained in January because it appears on many permit-renewal checklists. |
Late payment can draw a surcharge of up to 25% and interest of up to 2% a month, capped at 36 months (Local Government Code, Sec. 168). Each branch generally renews with the LGU where it is located. Real property tax, if you own land or a building, is a separate local tax and is not the same as the business permit.
If you later incorporate, or you are PEZA- or BOI-registered
SEC GIS and AFS filings start only when you have an SEC-registered entity — use the companion calendar for corporations and partnerships. Extra PEZA or BOI annual reports, when they apply, also usually sit with registered enterprises rather than ordinary sole proprietors; confirm with your IPA rather than treating those dates as a nationwide individual calendar.
Deeper BGB Insights on pieces of this calendar
This article is the overview for individuals. These guides cover individual deadlines in more detail:
- Annual BIR, SEC, and LGU calendar for corporations and SEC-registered partnerships — the companion post if you are incorporated or your partnership is registered with the Commission.
- How to Choose an External Auditor for Your SEC AFS — the BIR audit test under Section 232 (and the SEC test if you later incorporate).
- Business Permit Renewal for 2027: What to Prepare Before January 20 — documents, gross-sales figure, and late-renewal costs.
- Year-End Inventory List: What the BIR Expects Before January 30 — who must file, annex formats, and the January 29, 2027 practical date.
- Annual Sworn Declaration of Gross Receipts — January 15 (payee) and January 31 (payor) under RR No. 11-2018.
- CWT on sales invoices (RMC No. 112-2026) — invoice format vs. who actually withholds, and the January 1 / March 31, 2027 system dates.
A practical year-end checklist
- Map what applies to you. Pull your BIR COR, note VAT vs. non-VAT vs. 8%, whether you withhold, whether you keep inventory, and which LGU (or LGUs) issued your permit. Check the expiry date on your DTI business name (five-year validity, not annual).
- Close December books on time. Your LGU gross-sales declaration, inventory list, sworn declarations, and annual return all depend on a clean year-end close.
- Renew the LGU stack early in January (or by the anniversary date printed on your permit, if that is your city’s rule). Align the sales figure with your BIR returns. Obtain the community tax certificate in that window if the LGU asks for it, or in any case not later than the last day of February.
- Clear the January BIR cluster: sworn declarations, inventory list, alphalists, 2316 issued to employees (if you have any), and year-end book registration through ORUS if that applies.
- If you have employees on substituted filing, submit Annex F and the scanned, signed Form 2316 copies by February 28 (February 28, 2027 is a Sunday).
- If an audit is required under Section 232, make sure the auditor is already engaged and working toward the April 15 BIR attachment and eAFS upload.
- File the correct annual income tax return by April 15 — 1700, 1701, or 1701A — unless a new BIR circular extends that specific year, and keep your eAFS confirmation if you uploaded AFS.
- Update your COR whenever facts change, not only once a year.
How BGB can help
Not sure which of these filings are yours, or how to line up permit renewal, year-end attachments, and the annual return? BGB can map your BIR and LGU obligations, prepare the returns and reports in scope, and coordinate deadlines with you. Call (02) 8631-8618 or connect with BGB.
Frequently asked questions
Does this calendar apply if I am incorporated?
No. This guide is for sole proprietors, self-employed professionals, and other individuals who are not registered with the SEC. Corporations, One Person Corporations, and SEC-registered partnerships should use the companion calendar for SEC-registered entities.
I am a sole proprietor. Do I file a SEC GIS or SEC AFS?
Generally no. The General Information Sheet and the SEC filing of audited or unaudited financial statements are reportorial requirements of SEC-registered entities. You still handle BIR returns that match your Certificate of Registration, and you still renew your local business permit (typically in January) with the usual barangay, fire-safety, and sanitary stack your city or municipality requires. If you later incorporate, the SEC calendar starts to apply.
Do I renew my DTI business name every year?
No. A DTI business name registration is valid for five (5) years from the date of registration (DTI FAQs on Services, August 2022; bnrs.dti.gov.ph). You may file early starting 180 calendar days before expiry. Regular renewal is within 90 calendar days after expiry, with a further 90-day grace period subject to a surcharge. Names not renewed within the grace period are cancelled. DTI registration is also not a license to operate — you still need the LGU business permit each year.
Which annual income tax form do I file?
Use Form 1700 if you earn purely compensation income and are required to file (for example, more than one employer, or tax not correctly withheld). Use Form 1701A if you earn income purely from business or a profession and you use the optional standard deduction or the 8% option. Use Form 1701 if you have mixed income, you are purely self-employed and use itemized deductions, or you are filing for an estate or trust in business. Employees who qualify for substituted filing do not file 1700 — their BIR-received Form 2316 stands in. Corporations and business partnerships use a 1702-series return; that is covered in the companion SEC calendar.
When is the annual income tax return due?
Individuals file on or before April 15 covering the preceding calendar year (NIRC Sec. 51(C)(1)) on Form 1700, 1701, or 1701A, as applicable. One-time extensions apply only to the year named in the circular — for example, RMC No. 30-2026 moved filing, payment, and attachments for 2025 annual returns from April 15, 2026 to May 15, 2026. Do not treat that May 15 date as the permanent rule. For 2026 taxable year returns, plan around April 15, 2027 unless the BIR issues another extension.
Do I still pay the ₱500 BIR annual registration fee every January?
No. Republic Act No. 11976, the Ease of Paying Taxes Act, removed the Annual Registration Fee. BIR Revenue Memorandum Circular No. 14-2024 confirmed that, effective January 22, 2024, the Bureau stopped collecting the ₱500 fee and taxpayers no longer file Form 0605 for that purpose. An older Certificate of Registration may still list a registration fee; that line does not revive the payment. You still renew your LGU business permit every year.
Do I need audited financial statements as a sole proprietor?
Check the BIR test. Section 232 of the Tax Code requires an independent CPA examination when gross annual sales, earnings, receipts, or output exceed ₱3,000,000, and that audited set is attached to the annual income tax return through eAFS. Sole proprietors do not file those statements with the SEC. Our guide on choosing an external auditor walks through the BIR test (and the separate SEC test, which applies only if you later incorporate).
Does this calendar include VAT or percentage-tax filings?
No. Those are periodic filings, so they are left out of this annual list. Your Certificate of Registration still tells you whether you are VAT-registered, non-VAT, or a qualified individual on the 8% income tax option, and that status can affect other annual items (for example, sworn-declaration withholding rates). As of the sources checked for this article (November 2026), the VAT registration threshold remains ₱3 million in gross sales or receipts over 12 months — confirm against your COR and any later revenue regulation.
What if a deadline falls on a weekend or holiday?
Section 28 of the Administrative Code of 1987 moves a due date that falls on a regular holiday or special day to the next working day, and the BIR has applied the same idea to weekend deadlines (for example in RMC No. 5-2023). File early anyway when the submission needs a notarized paper, a USB or DVD, or a physical drop-off at an RDO that is closed on Saturday. January 30, 2027 (inventory list) falls on a Saturday, January 31, 2027 (several annual withholding information returns) falls on a Sunday, and February 28, 2027 (Annex F and substituted-filing 2316 copies) also falls on a Sunday — file a few working days early.
My city does not use January 20. Is that allowed?
Yes. The Local Government Code's general rule is payment of local taxes, fees, and charges within the first 20 days of January (Sec. 167). The sanggunian may extend that period without surcharge for up to six months, and some LGUs allow the tax to be paid in installments. The Ease of Doing Business Act (RA 11032) also lets an LGU treat the business permit as valid for one year from the date of issue, so some cities renew on the anniversary printed on the permit rather than every January. Quezon City is a common example of anniversary validity. Always follow your own LGU's revenue code and BPLO announcement.
Official sources & references
- National Internal Revenue Code of 1997, as amended — Sec. 51(C)(1) (individual annual return on or before April 15); Sec. 51-A (substituted filing); Sec. 26 (partners of a general professional partnership report their share); Sec. 58(D) (annual information returns of final withholding by January 31 and creditable withholding by March 1); Sec. 232 (independent CPA / AFS with the annual return): bir.gov.ph
- Ease of Paying Taxes Act (RA 11976) and RMC No. 14-2024 (removal of the ₱500 Annual Registration Fee, effective January 22, 2024): BIR EOPT flyer
- RMC No. 30-2026 — one-time extension of 2025 annual income tax returns, payment, and attachments from April 15, 2026 to May 15, 2026
- RMC No. 57-2015 and RMC No. 8-2023 — year-end inventory list formats and soft-copy submission
- RR No. 11-2018 (as amended) — sworn declaration of gross receipts, January 15 (payee) / January 31 (payor Annex C); Annex F certified list of employees qualified for substituted filing (due February 28, with the 2316 copies)
- RR No. 16-2021, RMC No. 117-2021, and RMC No. 29-2024 — scanned, signed Form 2316 copies for substituted-filing employees, due February 28
- RR No. 34-2020 — BIR Form 1709 (related-party transactions) as an attachment to the annual return, if the thresholds apply
- RMC No. 3-2023 and RMC No. 4-2026 — ORUS registration of books of accounts, including 2026 deadline clarifications for loose-leaf and computerized books
- BIR Form 1604-E instructions — annual expanded-withholding information return due on or before March 1: BIR Form 1604-E guidelines
- Administrative Code of 1987, Sec. 28, and BIR RMC No. 5-2023 — deadlines falling on a holiday or weekend
- Local Government Code (RA 7160), Secs. 143, 146, 156–164 (community tax; Sec. 161 — accrues January 1, paid not later than the last day of February), 165–168, 171 — business tax, payment window, surcharge and interest
- Ease of Doing Business Act (RA 11032), Sec. 11 — unified application form, one-stop shop, and permit validity of one year (first month or anniversary, as the LGU chooses)
- Fire Code of the Philippines (RA 9514) — Fire Safety Inspection Certificate
- National Building Code (PD 1096) — certificate of occupancy, typically issued after construction or a major renovation and often requested as a supporting copy at permit renewal
- DTI business name — valid for five (5) years from registration (DTI FAQs on Services, August 2022; bnrs.dti.gov.ph/faq). Early renewal from 180 days before expiry; regular filing within 90 days after expiry; further 90-day grace period with surcharge
- Companion calendar: annual BIR, SEC, and LGU requirements for corporations and SEC-registered partnerships
- Related BGB Insights: external auditor / AFS · business permit renewal 2027 · inventory list · sworn declaration · CWT on invoices
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